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Arbitration: a benefic dispute resolution method
When a dispute arises, a legal process can be long and costly. It can also cause anxiety to some people. It is important to know that there are alternatives to settle a conflict, going to court is not the only option. Great solutions are the dispute prevention and resolution processes (DPR). These include mediation, conciliation and arbitration.
DPR processes are voluntary, so the parties involved in the dispute must agree to them. They can be used in several situations : neighborhood relations (co-ownership, dividing lines, …), business relations (contracts, disputes between shareholders or with suppliers, …), commercial relations (consumption of goods and services, construction work, …) and many others.
It should be noted that since January 1, 2016, anyone is obligated to consider the use of private dispute prevention and resolution processes before going to court.
What about arbitration?
Arbitration is similar to a trial in that a specialist settles the dispute for the parties. However, it differs from a trial in several ways:
- It is confidential, whereas a trial is public;
- The process is faster and generally more economical;
- The arbitrator(s) are chosen by the parties, unlike a judge;
- The chosen arbitrator is a specialist in the field in which the dispute arises;
- The persons involved in the dispute can choose in part the rules that the arbitrator will have to apply to render his or her award. They can even give the arbitrator the option of setting aside certain rules of law.
It is possible to consent to arbitration once the dispute has arisen, but it is also possible to provide for it in advance in a contract, through an “arbitration agreement”.
It is important to know that the arbitration decision is final and without appeal, subject to an action for annulment, the grounds for which are expressly provided for in the Code of Civil Procedure of Québec. The arbitration decision can be homologated by a court, which makes it enforceable in the same way as a judgment.
Caroline Simard offers her services as an arbitrator for any dispute related to her areas of practice. Do not hesitate to contact her.